9911796707
TMI Blog2013 (11) TMI 639X X X X Extracts X X X X X X X X Extracts X X X X ..... ity, certifying that the vessel has to be used for petroleum operations as per the agreement entered into between the applicant and the Govt. of India. There is no doubt that the vessel has been used for petroleum operations except for a period of 22 days for a salvage purpose other than petroleum operations. There is no post import condition imposed on the applicant in the said Notification. Waiver of pre deposit - applicant has made out a case for 100% waiver of pre-deposit of dues adjudged in the impugned order. Accordingly, we grant waiver of pre-deposit of the entire amount of duty, interest and penalty and stay recovery thereof during the pendency of the appeal. The bank guarantee of 5% of the duty executed by the applicant at the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rom a duly authorized officer of the Director General of Hydrocarbons, in the Ministry of Petroleum and Natural Gas, Govt. of India to the effect that the imported goods are required for petroleum operations referred to in Clause (a) and have been imported under the contract referred to in that clause. The goods were cleared and exemption was granted. The applicant also executed a bond for Re-export after completion of the contract period. On an investigation, it was found that the vessel was used for other than the petroleum operations i.e. for salvage operation in the Mumbai Port for a period of 22 days from 10 th August 2010 to 2 nd September 2010. The department was of the view that as the applicant has violated the condition of the N ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the vessel has been imported for a specific purpose i.e. for petroleum operations and the above Notification gives the benefit only if it is used for the petroleum operations. It is an admitted fact that for nearly 22 days the vessel was used for salvage operations. Salvage operations were neither the petroleum operation nor were they undertaken in execution of a specified contract with the Govt. of India, therefore, the benefit of exemption was lost as the vessel was used for an alternative purpose which diversion was not permitted under the said Notification. As the applicant has violated the condition of Notification and the Notification has to be interpreted strictly therefore, there is no infirmity in the impugned order. Hence the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imported for petroleum operations and was intended to use for that purpose only therefore, the benefit of notification discussed above can not be denied. 8. In these circumstances, the applicant has made out a case for 100% waiver of pre-deposit of dues adjudged in the impugned order. Accordingly, we grant waiver of pre-deposit of the entire amount of duty, interest and penalty and stay recovery thereof during the pendency of the appeal. The bank guarantee of 5% of the duty executed by the applicant at the time of provisional release of the vessel shall be kept alive till the disposal of the appeal. 9. As the revenue involved is more than Rs.5 crore, therefore we direct the Registry to fix the matter for final hearing on 07.03.2013. Reg ..... X X X X Extracts X X X X X X X X Extracts X X X X
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